CME Group to Challenge CFTC Over Approval of Perpetual Futures in Landmark Legal Clash

CME Group is preparing to sue the U.S. Commodity Futures Trading Commission (CFTC) over its recent approval of perpetual futures contracts, escalating tensions between traditional derivatives exchanges and emerging crypto-native trading models.

Outgoing CME Group Chief Executive Terrence Duffy said on CNBC’s “Fast Money” that the exchange operator will file a lawsuit arguing that perpetual futures fall under the legal definition of swaps under the Dodd-Frank Act, and therefore should not have been approved as listed futures contracts.

The dispute centers on the CFTC’s late-May decision to approve Kalshi, a prediction market platform, to offer bitcoin perpetual futures — known as “perps” — in the United States. The contracts, which have no expiration date, allow traders to speculate on price movements without holding the underlying asset. The approval marked the first time the structure has been permitted in the U.S., despite its long-standing use in offshore crypto markets.

Kalshi has since expanded its perpetual futures offerings beyond bitcoin to include additional digital assets, further intensifying regulatory scrutiny from incumbent exchanges.

CME argues “perps are swaps, not futures”

Duffy said CME Group’s legal argument will rest on the classification of perpetual futures as swaps, which fall under a different regulatory framework than exchange-listed futures contracts.

“We have an exclusive license with every single provider of the benchmarks. So all of these would have to go through CME regardless of the perpetual,” Duffy said.

“They would have to list them as swaps, if that’s the way that it came out,” he added.

Duffy, who is set to step down as CEO in March 2027, said the decision to pursue litigation follows months of internal planning with the board.

“I’ve never shied away from a fight, and I won’t shy away from this,” he said, adding that CME intends to move forward with the lawsuit immediately.

Regulatory divide deepens in U.S. derivatives market

Earlier this week, CFTC Chair Michael Selig defended the agency’s approval of perpetual futures, arguing that the U.S. should modernize its derivatives market structure.

“It’s time to approve regulated futures contracts that have no expiration date,” Selig said on CNBC’s “Fast Money.” “We’re going to make sure the product’s available, but it’s well regulated here in the U.S.”

The dispute highlights a growing structural divide between traditional exchange operators and newer crypto-native platforms as regulators weigh how far U.S. markets should evolve to accommodate perpetual-style derivatives.